As the Chief Human Resources and Marketing Officer of a Fortune 1000 technology company, I’m responsible for ensuring we have the right people in the right place at the right time to keep this very complex global operation running flawlessly. If we can’t get orders out the door, then your workers won’t have the technology tools they need to get your customers’ orders out the door. I don’t want people to resign because they feel tired, stressed or not supported – whether they work in an office, from home, or in one of our warehouses or distribution centers.
I believe we – as employers – can do a better job of listening to our employees and acting on their suggestions. If employees are happy and feel supported, they’re going to stick around for a long time, and we could all use stability right now. Plus, happy employees are like magnets for other skilled, talented, passionate professionals.
That’s why I wanted to share some interesting feedback we received recently from hundreds of warehouse associates around the world through Zebra’s Global Warehousing Vision Study. The double-blinded study was conducted by a third party that fully vetted study participants to ensure we would get non-bias responses from people who actually work in warehouses. In fact, you may have been a study respondent or it’s possible that some of the respondents work for you, as we spoke with both associates and decision-makers.
Some of the survey findings provide insights into what you need to know right now from a worker recruitment/retention perspective and overall business planning/budgeting perspective.
Money doesn’t seem to make or break employment decisions among warehouse associates, at least not in the way you think. Eighty-two percent of surveyed associates say they have been positively impacted the past two years – despite what headlines may suggest. And it’s not because they’re being compensated with more money to make up for the heavier lift amid labor shortages. Only 45% of those associates say their employers have increased wages or offered bonuses amid labor constraints. What’s keeping their spirits high and contributing to their positive future outlook despite the pressures being placed on them amid labor and supply shortages, growing customer demands and uncompromising fulfillment timelines? Their employers have improved working conditions and increased spend on technology tools that make their jobs easier and their lives more balanced.
Are you surprised by that? We were too. Then again, we have seen multiple reports during the pandemic indicating that work-life balance, mental and physical health and other non-monetary factors were behind The Great Resignation and The Great Reshuffling. Perhaps this is the latest evidence those other benefits – the non-monetary factors – matter as much to front-line warehouse workers as they do to office workers. Perhaps they mean more. Unlike office-based workers who could have the option to negotiate a remote/work-from-home position, warehouse and distribution center associates must come in every day, rain or shine, including holidays. If they don’t have flexibility in where they work, they at least want flexibility with regards to when and how they work, as well as reduced stress on their bodies which is more than fair.
Robots aren’t so scary anymore. In fact, they’re appreciated by warehouse associates. Well, at least autonomous mobile robots (AMRs) are appreciated. Many who responded to our study strongly believe AMRs could make warehouse jobs less stressful, which aligns with the overall sentiment shared by nearly eight in 10 warehouse associates: “walking fewer miles per day would make my job more enjoyable, even if I had to pick or handle more items.”
Plus, the majority of those who work alongside AMRs today had glowing reviews. Over eight in 10 associates (83%) claim AMRs have helped increase their productivity and reduce walking/travel time, three-quarters say AMRs have helped reduce errors, and nearly two-thirds (65%) credit AMRs with career advancement opportunities. Additionally, among all associates surveyed, over three-quarters report they would feel safe working alongside AMRs, even though some have not yet worked directly with them.
Many of your industry partners, peers and competitors are planning to make big changes in the coming months and years to shore up their technology systems and overall operations. In fact, more than six in 10 warehouse decision-makers say they will invest in technologies that increase inventory and asset visibility within their warehouses and overall visibility throughout supply chains over the next five years. Additionally, nine in 10 warehouse operators expect to use sensor-based technologies such as radio frequency identification (RFID), computer vision, fixed industrial scanning, and machine vision systems at a growing rate over the next five years. And 90% of warehouse operators expect to deploy AMRs in the same time period. Warehouse operators say they are also going to increase their investments in software that helps automate analytics and decision-making.
That means your competitors will be able to better sense, analyze and act on what’s happening in real time, which could give them an advantage when it comes to winning and retaining customers. The increased technology utilization also means they may have a competitive edge when it comes to hiring and employee retention. As we learned in the study, 83% of warehouse associates are now more likely to work for an employer that gives them modern devices to use for tasks versus an employer that provides older or no devices. Even more associates (92%) believe technology advancements will make the warehouse environment more attractive to workers on some level – and I agree.
No matter how much you automate, people will always play a central role in warehouse, distribution and logistics operations, whether from a creative problem solving, customer service or action-oriented fulfillment perspective. If you want to keep workers happy, on your payroll and even increase headcount in the next year – like 61% of the warehouse operators we surveyed – then talk to your employees. Share the full Warehousing Vision Study report with them. You can download it here for no charge. Or at least pass along the stats highlighted in the press release and ask them for their honest reaction.
Use this study as a conversation starter. Find out what you could do as a warehouse operator or decision-maker to better support them. Confirm which technology tools they’d like to see you prioritize as budget allows. Also ask about changes that could be made to the scheduling process, current workflows or even communications structure with supervisors and decision-makers. Do they simply need more flexibility in their schedules to stick it out with you through thick and thin? You won’t know if you don’t ask.
As I’ve learned through this Warehousing Vision Study and with the Zebra employee climate assessments we’ve recently conducted, our employees are willing to answer questions about how they feel, especially if they have the opportunity to provide anonymous feedback. Don’t be afraid of what you might learn. If anything, the truth might be exactly what you need to make the right decisions for your business, your customers and certainly your employees in these tumultuous times.
Benefits for Amazon's customers--who include marketplace retailers and logistics services customers, as well as companies who use its Amazon Web Services (AWS) platform and the e-commerce shoppers who buy goods on the website--will include generative AI (Gen AI) solutions that offer real-world value, the company said.
The launch is based on “Amazon Nova,” the company’s new generation of foundation models, the company said in a blog post. Data scientists use foundation models (FMs) to develop machine learning (ML) platforms more quickly than starting from scratch, allowing them to create artificial intelligence applications capable of performing a wide variety of general tasks, since they were trained on a broad spectrum of generalized data, Amazon says.
The new models are integrated with Amazon Bedrock, a managed service that makes FMs from AI companies and Amazon available for use through a single API. Using Amazon Bedrock, customers can experiment with and evaluate Amazon Nova models, as well as other FMs, to determine the best model for an application.
Calling the launch “the next step in our AI journey,” the company says Amazon Nova has the ability to process text, image, and video as prompts, so customers can use Amazon Nova-powered generative AI applications to understand videos, charts, and documents, or to generate videos and other multimedia content.
“Inside Amazon, we have about 1,000 Gen AI applications in motion, and we’ve had a bird’s-eye view of what application builders are still grappling with,” Rohit Prasad, SVP of Amazon Artificial General Intelligence, said in a release. “Our new Amazon Nova models are intended to help with these challenges for internal and external builders, and provide compelling intelligence and content generation while also delivering meaningful progress on latency, cost-effectiveness, customization, information grounding, and agentic capabilities.”
The new Amazon Nova models available in Amazon Bedrock include:
Amazon Nova Micro, a text-only model that delivers the lowest latency responses at very low cost.
Amazon Nova Lite, a very low-cost multimodal model that is lightning fast for processing image, video, and text inputs.
Amazon Nova Pro, a highly capable multimodal model with the best combination of accuracy, speed, and cost for a wide range of tasks.
Amazon Nova Premier, the most capable of Amazon’s multimodal models for complex reasoning tasks and for use as the best teacher for distilling custom models
Amazon Nova Canvas, a state-of-the-art image generation model.
Amazon Nova Reel, a state-of-the-art video generation model that can transform a single image input into a brief video with the prompt: dolly forward.
Economic activity in the logistics industry expanded in November, continuing a steady growth pattern that began earlier this year and signaling a return to seasonality after several years of fluctuating conditions, according to the latest Logistics Managers’ Index report (LMI), released today.
The November LMI registered 58.4, down slightly from October’s reading of 58.9, which was the highest level in two years. The LMI is a monthly gauge of business conditions across warehousing and logistics markets; a reading above 50 indicates growth and a reading below 50 indicates contraction.
“The overall index has been very consistent in the past three months, with readings of 58.6, 58.9, and 58.4,” LMI analyst Zac Rogers, associate professor of supply chain management at Colorado State University, wrote in the November LMI report. “This plateau is slightly higher than a similar plateau of consistency earlier in the year when May to August saw four readings between 55.3 and 56.4. Seasonally speaking, it is consistent that this later year run of readings would be the highest all year.”
Separately, Rogers said the end-of-year growth reflects the return to a healthy holiday peak, which started when inventory levels expanded in late summer and early fall as retailers began stocking up to meet consumer demand. Pandemic-driven shifts in consumer buying behavior, inflation, and economic uncertainty contributed to volatile peak season conditions over the past four years, with the LMI swinging from record-high growth in late 2020 and 2021 to slower growth in 2022 and contraction in 2023.
“The LMI contracted at this time a year ago, so basically [there was] no peak season,” Rogers said, citing inflation as a drag on demand. “To have a normal November … [really] for the first time in five years, justifies what we’ve seen all these companies doing—building up inventory in a sustainable, seasonal way.
“Based on what we’re seeing, a lot of supply chains called it right and were ready for healthy holiday season, so far.”
The LMI has remained in the mid to high 50s range since January—with the exception of April, when the index dipped to 52.9—signaling strong and consistent demand for warehousing and transportation services.
The LMI is a monthly survey of logistics managers from across the country. It tracks industry growth overall and across eight areas: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. The report is released monthly by researchers from Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
Freight transportation providers and maritime port operators are bracing for rough business impacts if the incoming Trump Administration follows through on its pledge to impose a 25% tariff on Mexico and Canada and an additional 10% tariff on China, analysts say.
Industry contacts say they fear that such heavy fees could prompt importers to “pull forward” a massive surge of goods before the new administration is seated on January 20, and then quickly cut back again once the hefty new fees are instituted, according to a report from TD Cowen.
As a measure of the potential economic impact of that uncertain scenario, transport company stocks were mostly trading down yesterday following Donald Trump’s social media post on Monday night announcing the proposed new policy, TD Cowen said in a note to investors.
But an alternative impact of the tariff jump could be that it doesn’t happen at all, but is merely a threat intended to force other nations to the table to strike new deals on trade, immigration, or drug smuggling. “Trump is perfectly comfortable being a policy paradox and pushing competing policies (and people); this ‘chaos premium’ only increases his leverage in negotiations,” the firm said.
However, if that truly is the new administration’s strategy, it could backfire by sparking a tit-for-tat trade war that includes retaliatory tariffs by other countries on U.S. exports, other analysts said. “The additional tariffs on China that the incoming US administration plans to impose will add to restrictions on China-made products, driving up their prices and fueling an already-under-way surge in efforts to beat the tariffs by importing products before the inauguration,” Andrei Quinn-Barabanov, Senior Director – Supplier Risk Management solutions at Moody’s, said in a statement. “The Mexico and Canada tariffs may be an invitation to negotiations with the U.S. on immigration and other issues. If implemented, they would also be challenging to maintain, because the two nations can threaten the U.S. with significant retaliation and because of a likely pressure from the American business community that would be greatly affected by the costs and supply chain obstacles resulting from the tariffs.”
New tariffs could also damage sensitive supply chains by triggering unintended consequences, according to a report by Matt Lekstutis, Director at Efficio, a global procurement and supply chain procurement consultancy. “While ultimate tariff policy will likely be implemented to achieve specific US re-industrialization and other political objectives, the responses of various nations, companies and trading partners is not easily predicted and companies that even have little or no exposure to Mexico, China or Canada could be impacted. New tariffs may disrupt supply chains dependent on just in time deliveries as they adjust to new trade flows. This could affect all industries dependent on distribution and logistics providers and result in supply shortages,” Lekstutis said.
Grocers and retailers are struggling to get their systems back online just before the winter holiday peak, following a software hack that hit the supply chain software provider Blue Yonder this week.
The ransomware attack is snarling inventory distribution patterns because of its impact on systems such as the employee scheduling system for coffee stalwart Starbucks, according to a published report. Scottsdale, Arizona-based Blue Yonder provides a wide range of supply chain software, including warehouse management system (WMS), transportation management system (TMS), order management and commerce, network and control tower, returns management, and others.
Blue Yonder today acknowledged the disruptions, saying they were the result of a ransomware incident affecting its managed services hosted environment. The company has established a dedicated cybersecurity incident update webpage to communicate its recovery progress, but it had not been updated for nearly two days as of Tuesday afternoon. “Since learning of the incident, the Blue Yonder team has been working diligently together with external cybersecurity firms to make progress in their recovery process. We have implemented several defensive and forensic protocols,” a Blue Yonder spokesperson said in an email.
The timing of the attack suggests that hackers may have targeted Blue Yonder in a calculated attack based on the upcoming Thanksgiving break, since many U.S. organizations downsize their security staffing on holidays and weekends, according to a statement from Dan Lattimer, VP of Semperis, a New Jersey-based computer and network security firm.
“While details on the specifics of the Blue Yonder attack are scant, it is yet another reminder how damaging supply chain disruptions become when suppliers are taken offline. Kudos to Blue Yonder for dealing with this cyberattack head on but we still don’t know how far reaching the business disruptions will be in the UK, U.S. and other countries,” Lattimer said. “Now is time for organizations to fight back against threat actors. Deciding whether or not to pay a ransom is a personal decision that each company has to make, but paying emboldens threat actors and throws more fuel onto an already burning inferno. Simply, it doesn’t pay-to-pay,” he said.
The incident closely followed an unrelated cybersecurity issue at the grocery giant Ahold Delhaize, which has been recovering from impacts to the Stop & Shop chain that it across the U.S. Northeast region. In a statement apologizing to customers for the inconvenience of the cybersecurity issue, Netherlands-based Ahold Delhaize said its top priority is the security of its customers, associates and partners, and that the company’s internal IT security staff was working with external cybersecurity experts and law enforcement to speed recovery. “Our teams are taking steps to assess and mitigate the issue. This includes taking some systems offline to help protect them. This issue and subsequent mitigating actions have affected certain Ahold Delhaize USA brands and services including a number of pharmacies and certain e-commerce operations,” the company said.
Editor's note:This article was revised on November 27 to indicate that the cybersecurity issue at Ahold Delhaize was unrelated to the Blue Yonder hack.